The personal causes of corrupt behaviour in the private sector

What prompts decision-makers in companies to engage in corrupt behaviour? Ms Tanja Rabl’s doctoral thesis, supervised by Prof. Dr T. M. Kühlmann at the Chair of Human Resource Management and Leadership at the University of Bayreuth, addresses this question and has since been awarded the Ludwig Erhard Prize.

Background

Corruption is perceived worldwide as a serious problem that has long since ceased to affect only politics and public administration, but also the private sector. Headlines in the press include ‘They’ve found evidence at nine to ten companies’ and ‘Self-serving behaviour in DAX-listed corporations – corruption is a matter for top management’.

Existing research into corruption offers a wide range of approaches to conceptualising and explaining the phenomenon of corruption, whilst examining its causes and consequences. However, it rarely focuses on the corrupt actor themselves. When examining uncovered cases of corruption to determine who actually engaged in corrupt practices, the question of ‘why’ arises in particular.

The thesis

This doctoral thesis, now published as a book, deals with private corruption – that is, corruption within companies and between companies. The focus is on examining the subjective decision-making process of corrupt actors.

Based on a careful analysis of the literature on the phenomenon of private corruption – an approach that has been neglected to date – the author arrives at the central questions of the study: What prompts decision-makers to engage in corruption within companies? Which volitional, emotional and cognitive components and motivations play a role? And how does the interplay of these components ultimately lead to corruption?

To answer these questions, and on the basis of an empirical study conducted in Germany, the author develops a model of corrupt behaviour. The model is further refined by testing it within the framework of an experimental simulation involving a business simulation game. Furthermore, the study examines the influence of a number of key personal and situational factors on the model of corruption. It paints a picture of the most common reasons for corrupt behaviour and highlights the rationalisation strategies employed by corrupt actors.

The study not only contributes to existing academic research but also has important practical implications. The model of corrupt behaviour offers companies a useful tool for preventing and combating corruption. The author provides recommendations for (human resources) management (recruitment, job design, training and incentive policies) and suggestions as to which measures can be implemented to address the critical individual determinants of corruption.

Award

The thesis was awarded the Ludwig Erhard Prize in 2009. The prize promotes research activities which, in the spirit of the Fürth-born economist Ludwig Erhard, are innovative, practice-oriented and economically useful, whilst also taking into account the impact of economic processes on society.

Tanja Rabl, Private Corruption and its Actors

: Insights into the Subjective Decision-Making Processes, Pabst Science Publishers, ISBN 978-3-89967-525-2